NAFTA Exit Negative for U.S. Autos

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During 2017, President Donald Trump’s administration made three major policy moves relevant to the U.S. auto industry.

The first came Jan. 23, when Trump pulled the United States out of the Trans-Pacific Partnership. We are glad he exited the agreement; we do not think TPP would have helped U.S. automakers gain meaningful market penetration in TPP countries such as Japan and Malaysia because Japanese automakers dominate many Southeast Asian nations, and we expect they would continue to do so even with TPP.

David Whiston, CFA, CPA, CFE does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.